Govt. borrows record W91.6 tr in temporary loans from BOK in H1


The image depicts stacks of money, and it is reported that the government borrowed a record-breaking 91.6 trillion won ($65.8 billion) in temporary loans from the Bank of Korea in the first half of the year to address its fiscal deficit. This borrowing is the highest amount since 2011 and has surpassed last year's figure by 4.4 trillion won and by 8 trillion won compared to the same period in 2020. The government has repaid 71.7 trillion won of the borrowed amount. The temporary loan system is similar to an overdraft account for individuals and is used to address short-term funding shortages, but observers are concerned that this frequent borrowing could lead to increased liquidity circulation and hinder efforts to control inflation. Additionally, relying on easy borrowing from the central bank instead of issuing treasury securities may make it challenging for the National Assembly and the public to comprehend the government's financial situation. In summary, the government's temporary borrowing from the Bank of Korea has reached a record high, with 91.6 trillion won borrowed in the first half of the year to cover its fiscal shortfall. This borrowing exceeds previous years' figures and has raised concerns about its potential impact on inflation and the transparency of the government's financial situation.


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